According to Jinshi, analysts pointed out that the good thing about Germany's economic growth momentum from the PMI data is that this occurred when price pressures eased in the second quarter. Like the French readings, these are reports that the European Central Bank wants to see. The ECB is considering cutting interest rates next month, which may put pressure on the euro. The report showed that against the backdrop of cooling input cost inflation, the pace of output price increases for German companies fell to the lowest level since early 2021, while the manufacturing and service PMIs in May were higher than expected. Average output prices are also below the long-term trend.
